Demonetization Essay

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IMPACT OF DEMONETIZATION ON RURAL INDIA MALARVIZHI.N – II B.COM (C.S) BHUVANESHWARI.S– II B.COM (C.S) AYISHA PARVEEN.K– II B.COM (C.S) ______________________________________________________________________________ Abstract: Demonetization means the act of stripping a currency unit of its status as legal tender. There are multiple reasons why nations demonetize their local units of currency. The process of demonetization involves either introducing new notes of the same currency or completely replacing the old currency with new currency. This paper focuses on the change in buying behavior of consumer after demonetization and also analyzes, how the people who have never used ATM, payTM,, online shopping etc. has become digitalized. The term …show more content…

• To study the impact of demonetization on agricultural sector and farmers of rural India. • To study the impact of demonetization on economy of India. THE IMPACT OF DEMONETIZATION ON AGRICULTURAL SECTOR AND FARMERS OF RURAL INDIA: Agriculture plays an important role in the Indian economy. Over 70 % of the rural households depend on agriculture. Agriculture is the backbone of Indian economy as it contributes about 17% to the total GDP and provides employment to over 60% of the population. It also provides raw materials to leading industries such as cotton textiles and sugar industries. The number of various agricultural commodities like tea, coffee, spices and tobacco constitutes our main items of exports. This amounts to almost 15% of India’s total exports. Hence agriculture provides foreign exchange which helps us to purchase machines from abroad. It also maintains a balance of payments and makes our country self-sufficient. Agriculture has brought fame to the country. India holds first position in the world for the production of tea and groundnuts, Indian agriculture has registered speedy growth over last few …show more content…

Repeating that 4 or 5 times in a week can be exhaustive. However, the limit has been exceeded than before and government is taking other necessary formalities which would ensure that the farmer does not have to commit suicide. Besides those negative effects of demonetization there is also hope of every Indian farmer upon demonetization that this historical step will concrete our economy and also fruitful for our country in future. THE VARIOUS EFFECTS OF DEMONETIZATION THAT WOULD BE VERY POSITIVE FOR FARMERS ARE: • With plentiful money, the government becomes able to complete the incomplete irrigation projects so that more land comes under irrigation and two crops instead of one crop in a season can be taken by farmers. This will double up their income as our Prime Minister Mr Narandar Modi has promised to do. • The interest rates of banks started falling which could reduce the capital cost and farmers can now go for farm

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